Women are more likely to worry about money on a daily or weekly basis. File photo. Photo: Pixabay
Women are proving more financially literate than men, but often underestimate their own abilities, according to a report by the Financial Services Council (FSC).
The FSC Insights & Trends: Women and Finance in New Zealand research found two-thirds of women correctly answered three or more financial literacy questions, compared with 57 percent of men, with a strong understanding of key financial concepts such as investment strategies and risk diversification.
"The data is clear - women are better investors than they think they are," FSC chief executive Kirk Hope said.
But more than 80 percent of women still rated their financial well-being as low, with 78 percent either considering or already receiving financial guidance.
Women were also more likely to worry about money on a daily or weekly basis, impacting their overall well-being.
"We need to shift the narrative from perceived lack of confidence to recognising women's strengths in financial decision-making," Hope said.
"What that might do is ensure that women felt more confident in terms of making financial decisions.
"What it should do, that increase in confidence, it should help reduce the gender pay gap.
"It should make them feel more comfortable when they're making financial decisions because they're clearly competent."
The report also found that while women tended to invest more cautiously, they often achieved better long-term results due to their measured approach and focus on financial security.
The research showed the gender pay gap between men and women, as well as career interruptions, contributed to lower lifetime earnings and a 25 percent gap in retirement savings between men and women in KiwiSaver.
That finding was reflected in 58 percent of women feeling unprepared for retirement, compared to a lower percentage of men.
"The current KiwiSaver settings disadvantages those who take career breaks, disproportionately affecting women who pause their earnings to care for or start their families," Hope said.
"It is evident that strategic policy changes can lay the groundwork for transformative, long-term benefits, ensuring greater financial security for generations of New Zealand women."
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